Noeleen AutoMall, Ltd. recently completed an initial public offering(IPO) for$23,000,000 by listing its common shares on the New York Stock Exchange. Prior to itsIPO, Noeleen was a privately held family business. As a publiccompany, Noeleen faced increased reportingrequirements, particularly those sanctioned by the Securities and Exchange Commission(SEC). Noeleen'sController, DonaldLierni, was surprised to learn that a Form10-Q was required to satisfy thecompany's first-quarter filing requirements with the SEC. Lierni lacked sufficient time to develop the"actual" numbers needed to prepare thereport, meaning that he needed to make significant estimates before the10-Q filing due date.Inaddition, Noeleen now had to satisfy a new group of financial statement users with additional information needs. Noeleen expended resources to meet the new reporting requirements and assess what information and disclosures toinclude/exclude from the financial reports. Lierni also learned that privately held companies are not subject to U.S. GAAP requirements like a publicly traded entity. Thatis, the company now had to follow additional U.S. GAAP standards and was required to change several of its accounting methods. When considering hisoptions, Lierni decided to take a"safe" approach and report the lowest income possible by adoptingincome-reducing standards.Here, the Controller proposed taking excesswrite-downs for obsolete inventory and potentially impaired assets. He also decided to expense the cost of a significant investment in office equipment. Finally, Noeleen created a separate legal entity to handle its autofinancing, Benedict Arnold CreditCompany, during the same year it went public. The separate entity is not consolidated with the primary financial statements. Lierni decided to keep this entity off balance sheet and did not see any need for disclosure ofNoeleen's relationship with Benedict Arnold Credit.

Below is the issue, and the problem is asking for the issue corresponding to the letter and the conceptual framework for intermediate accounting chapter 2 pearson gordon

a.	Noeleen's Controller, DonaldLierni, was surprised to learn that a Form10-Q was required to satisfy thecompany's first quarter filing requirements with the SEC. Lierni was concerned that there is insufficient time to develop the"actual" numbers needed to prepare the report. The10-Q required that significant estimates had to be made before the filing due date.
b.	Noeleen created a separate legal entity to handle its autofinancing, Benedict Arnold CreditCompany, during the same year it went public. The separate entity is not consolidated with the primary financial statements. Lierni decided to keep this entity off balance sheet and did not see any need for disclosure ofNoeleen's relationship with Benedict Arnold Credit Company.
c.	Noeleen AutoMall, Ltd. recently completed an initial public offering(IPO) for$23,000,000 by listing its common shares on the New York Stock Exchange.